. Legislative regulation of railway finance in England . regardless of its productivity of revenue, can, and did,only eventuate in a diminution, or even entire cessation, of divi-dends on ordinary stocks. (4) Payment of&uch interest to continue only during constructionof the works, or for such less period as the .Committee may thinkfit to authorize, according to the circumstances of the case. (5) The rate of interest to be fixed by the Committee, but inno case to exceed 5$, W\, MuX* (6) The prospectus and share certificates to contain on theface of them an intimation that interest is payable o
. Legislative regulation of railway finance in England . regardless of its productivity of revenue, can, and did,only eventuate in a diminution, or even entire cessation, of divi-dends on ordinary stocks. (4) Payment of&uch interest to continue only during constructionof the works, or for such less period as the .Committee may thinkfit to authorize, according to the circumstances of the case. (5) The rate of interest to be fixed by the Committee, but inno case to exceed 5$, W\, MuX* (6) The prospectus and share certificates to contain on theface of them an intimation that interest is payable out of capitalduring construction only/^C The committee also recommended that these provisions should beenacted in a general act, instead of mere modifications of thestanding orders. See report of Select Committee, May 19, 1882,Parliamentary Paper, 1882, vol. 13. Railway Times, March 16, 1889, p. -Railway Times, March Ibid. 3^m Praser^ British Railways, 1903, pp. ^as ej^3r±4*teto~~&*i2xrE^^.jL 9t>3>—1-4-4^.. The result of charging working expenses to capital hasproved to be equally objectionable. It necessitated the overburden^of the business with overWre-ltaiiisi-y large capital charges, whichsooner or later would give much embarrassment to the so far as the public was not clearly aware of these manipula-tions, the practice proved exceedingly illusory. It was merely amatter of white-washing the true state of affairs by throwing ex-penses on the revenue of the future. Indeed, the besetting evil it* of railway finance, as observed the London Times, has arisenfrom the confusion of two things- capital and revenue. some ofthe most serious disputes, which affected in a remarkable degree theproperty of some important compares, turned entirely upon the mysti-fication over the charging of these two items. Directors werecharged with carrying to capital^expenses which belonged to re-venue; and proprietors cTamoiN^cjisl-y demanded that cap
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